Select your investor profile:
This content is only for the selected type of investor.
Individual investors?
European Direct Lending
We offer bespoke financing solutions which address the strategic and operational needs of corporate borrowers in the European lower mid-market.
Building on a longstanding heritage in fixed-income and alternatives investing, Pictet Asset Management has set up a pan-European private debt platform under the leadership of Andreas Klein, Head of Private Debt.
Our European Direct Lending strategy aims to deliver strong[1] long-term risk-adjusted returns by providing debt financing for privately-owned lower mid-market companies in Europe (EBITDA of €5-15 million). The strategy was launched in 2023 and deployment of committed capital has started.
Our European Direct Lending strategy aims to deliver strong[1] long-term risk-adjusted returns by providing debt financing for privately-owned lower mid-market companies in Europe (EBITDA of €5-15 million). The strategy was launched in 2023 and deployment of committed capital has started.
We look for deals involving niche, robust businesses across low-beta industries such as Healthcare, Education, Business Services and Software/Tech.
Our investment beliefs
| 1. Credit fundamentals
We believe the biggest determinant of long-term success is the underlying credit fundamentals of any investee company and its market niche |
2. Lower-mid market alpha |
|
3. Liquidity and resilience |
4. Local expertise |
|
5. Partnership |
6. Risk management by design |
Deal examples[3]
Time Tac GmbH
|
|
Country: Austria |
Mlase AG
|
|
Country: Germany Area of activity: Excimer laser heads manufacturer for the MedTech industry Deal type: Unitranche financing solution for the primary buyout of the company Investment date: August 2023 |
Liciel Environment
|
|
Country: France Area of activity: Software solutions for property diagnosticians Deal type: Unitranche financing for the sponsorless primary buy-out of the company Investment date: July 2023 |
Source: Pictet Asset Management, February 2024.
[1] Euribor base rate + c.8% gross yield. This objective is based on the achievement of market assumptions approved by the management company. The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies, and/or current market conditions and is not an exact indicator. What you will get will vary depending on how the market performs and how long you keep the investment/product. The expected future performance does not in any way constitute a promise of future returns. All forms of investment involve risk. The value of investments and the income derived from them is not guaranteed and it can fall as well as rise and you may not get back the original amount invested.
[2] By clicking on the contact us button, you agree that your message may be sent to a central department of Pictet Asset Management which may be in an entity of the Pictet Group located in a country other than your own, and that the content of your message and your contact details may be shared between different teams in order to provide the best response to your enquiry.
[3] Deal examples provided for illustrative purposes only. They shall not be considered as a direct offering, investment recommendation or investment advice. Reference to a specific security is not a recommendation to buy or sell that security. Current deals may be subject to change.
Meet our head and regional heads of Private Debt
Read more content related to private debt
Direct lending in times of uncertainty
It might seem a harsh economic environment for lenders, but not for those providing direct loans. We believe reduced competition from the banking sector, the ability to select from companies with strong balance sheets, and high yields make this a very appealing entry point.
July 2023
Demystifying private credit
Private credit is growing in importance as a source of capital. It gives investors premium yields and flexibility, but requires specialist skills and market access.
October 2023
The sweetspot in European direct lending
When it comes to European direct lending, we believe that small is beautiful. Here is why.
April 2023
Important legal information
This marketing material is issued by Pictet Asset Management (Europe) S.A.. It is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of, or domiciled or located in, any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. The latest version of the fund‘s prospectus, Pre-Contractual Template (PCT) when applicable, Key Information Document (KID), annual and semi-annual reports must be read before investing. They are available free of charge in English on www.assetmanagement.pictet or in paper copy at Pictet Asset Management (Europe) S.A., 6B, rue du Fort Niedergruenewald, L-2226 Luxembourg, or at the office of the fund local agent, distributor or centralizing agent if any.
The KID is also available in the local language of each country where the compartment is registered. The prospectus, the PCT when applicable, and the annual and semi-annual reports may also be available in other languages, please refer to the website for other available languages. Only the latest version of these documents may be relied upon as the basis for investment decisions.
The summary of investor rights (in English and in the different languages of our website) is available here and at www.assetmanagement.pictet under the heading "Resources", at the bottom of the page.
The list of countries where the fund is registered can be obtained at all times from Pictet Asset Management (Europe) S.A., which may decide to terminate the arrangements made for the marketing of the fund or compartments of the fund in any given country.
The information and data presented in this document are not to be considered as an offer or solicitation to buy, sell or subscribe to any securities or financial instruments or services.
Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. The management company has not taken any steps to ensure that the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional.
The value and income of any of the securities or financial instruments mentioned in this document may fall as well as rise and, as a consequence, investors may receive back less than originally invested.
The investment guidelines are internal guidelines which are subject to change at any time and without any notice within the limits of the fund's prospectus. The mentioned financial instruments are provided for illustrative purposes only and shall not be considered as a direct offering, investment recommendation or investment advice. Reference to a specific security is not a recommendation to buy or sell that security. Effective allocations are subject to change and may have changed since the date of the marketing material.
Past performance is not a guarantee or a reliable indicator of future performance. Performance data does not include the commissions and fees charged at the time of subscribing for or redeeming shares.
Any index data referenced herein remains the property of the Data Vendor. Data Vendor Disclaimers are available on assetmanagement.pictet in the “Resources” section of the footer. This document is a marketing communication issued by Pictet Asset Management and is not in scope for any MiFID II/MiFIR requirements specifically related to investment research. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any products or services offered or distributed by Pictet Asset Management.
Pictet AM has not acquired any rights or license to reproduce the trademarks, logos or images set out in this document except that it holds the rights to use any entity of the Pictet group trademarks. For illustrative purposes only.